“Republicans promised that their tax plan would bring jobs home to the U.S., but instead it is encouraging multi-billion dollar corporations to move jobs and ship profits overseas,” said Rep. DeFazio, (D-OR). “My legislation would close the loopholes Republicans left open for wealthy businesses and eliminate incentives luring American jobs and American dollars to other countries.”

While Republicans and the Trump administration promised their recently-passed tax bill would bring jobs back to the U.S., it actually encourages multinational corporations to move overseas in order to avoid paying U.S. taxes. The new tax law allows multinational corporations to reduce their overall tax liability by requiring only a minimum tax on an average of profits earned in both low-tax and high-tax countries, instead of taxing profits earned in different countries separately. This system incentivizes companies to shift earnings abroad in order to bypass U.S. taxes.

To correct this, Rep. DeFazio’s Per-Country Minimum Act, H.R. 6015, would require that the tax rate be applied on a per-country basis. Under this legislation, taxes are paid based on the country in which the profits are earned and not averaged. This reform would raise a significant amount of revenue for the United States and remove the incentive for businesses to move profits to foreign nations.

Rep. DeFazio’s legislation is endorsed by the FACT Coalition, a group of progressive organizations including Public Citizen, Center for Economic and Policy Research, Citizens for Tax Justice, and the Main Street Alliance.

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Bob ClarkJuly 4, 2018

Defazio acting as partisan of course ignores the Tax Cut reduced the incentive from what it was with respect to booking profits overseas, as the marginal tax rate on U.S. corporate taxes is dropped from 35% or so to 21% with Trump’s Tax Cut- lowering U.S. corporate taxes to be more in line with competing countries.
I read reports some $350 billion in overseas U.S profits is returned now to the U.S. since the passing of the Tax Cut.

Larry SparksJuly 4, 2018

DeFazio comments were 99% false. Harley-Davidson is the only company to announce it is manufacturing some motorcycles overseas. In fact, over the last 3 months more than 500 billion dollars have flowed into the United States from multinational corporations.